Reps probe fresh pension scam under PTAD

The House of Representatives said on Wednesday that it had received complaints of alleged fresh pension scam under the Pension Transitional Arrangement Directorate.

It expressed fears that pension management might return to the dark old days, leaving beneficiaries wallowing in penury if PTAD was not immediately put under check.

Under the amended 2014 Pension Reform Act, PTAD was created for the purpose of “managing pension under the Defined Benefit Scheme for pensioners who retired before June 2007 and therefore did not transit to the defined contributory pension scheme.”

In addition, PTAD was empowered to “oversee the funds, assets or liabilities of all pension offices existing before the coming into force of the Act and also to make budgetary estimates for existing pensioners and officers exempted from the contributory pension scheme under Section 5(1) of the Act.”

But, the House stated on Wednesday that PTAD appeared to be failing in its duties, as the same allegations of poor management of funds, which were common with the old order, were beginning to emerge again.

Passing a resolution on a motion by Mr. Sergius Ose-Ogun, the House noted that there were reports of “abuse of pension funds, abuse of office” by PTAD.

Among other issues, the House stated that PTAD was not paying 33 per cent harmonised arrears to beneficiaries, did not pay monthly pensions, while its members of staff took “unjustified salaries and allowances.”

In addition, the House said members could not comprehend the aim of the N1bn deduction for PTAD accounting records and the payment of N500m yearly as rent for its office.

“The House is also concerned that unless there is a strict compliance with the Pension Reform Act, 2014, the nation could be thrown back to the past era that was characterised by irregularities that subjected retirees to enormous hardships and ultimately negate the objectives of establishing the PTAD,” the resolution added.

The House resolved to audit the assets of pension offices existing before the commencement of the Act in 2014 and to “determine the level of compliance with the Act in the execution of its mandate within six weeks.”

Meanwhile, the House in a separate resolution, summoned the Minister of the Federal Capital Territory, Mr. Mohammed Bello, for breaching the FCT Inland Revenue Service Act.

The sponsor of the motion on the matter, Mr. Abdulrazak Namdas, told the House that the minister breached the Act by opting to engage the Federal Inland Revenue Service to collect revenue for the FCT instead of the FCT revenue agency created by the Act in February 2015.

“The House is worried that the Minister of the FCT has signed a comprehensive agreement with the FIRS to collect taxes for the FCT, in breach of the existing law,” the resolution stated.

Bello is to appear before the House Committee on FCT to explain his actions.

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